What leads to high performance? – Is not what you think

The question that has motivated thousands of modern management studies is coated with smoke. There are widespread beliefs and urban and corporate myths about the behaviours, traits, and ingredients that lead organizations to achieve success. Yet the answers remain elusive and, at times, contradictory. This short article explores the topic by debunking some common approaches or "formulas “used in organizations and in the process, attempting to find, based on evidence, more clarity on the subject –?spoiler alert – some of the concepts and conclusions here presented will feel counterintuitive and hopefully controversial. Here are the four myths that, according to current zeitgeist, are believed to be the magic elixir leading to higher performance:

1) Adopting "Agile"

2) Speed is everything

3) Obsessing about outcomes

4) It's all about top talent

Adopting Agile leads to … rigidity?

I have worked in Agile teams, and I must admit there are some benefits to it – Yes, I'm a sinner! But I became increasingly suspicious when Agile "preachers" started appearing left and right promoting Agile as the answer to all issues; and that the only way to truly be agile was to embrace the fully fledge methodology – in other words converting and surrendering to the higher Agile power…?I also realized that this was a cult-type of movement when normal roles started having MCU (Marvel Cinematic Universe) kind of names such as "Tribe leader", "Epic Owner", Scrum Master, or my favorite - "The Integrator" - or is it "The Terminator"? I became finally agnostic when big consulting companies promoted?"agile transformation offices," simply rebranding the classic program management office, which contradicts the original agile principles. An office that "defines the overarching goal," "records progress," and "creates minimal criteria" opposes the agile manifesto's philosophy of "self-organizing teams" and likely "people over procedure." And so, adopting Agile became a very invasive and heavy procedure for many organizations, the equivalent of treating a common headache using electroshocks – it's not really recommended, and chances are, you didn′t needed it in the first place.

From big, listed firms to tiny start-ups all started adopting Agile. But Agile's appeal has also been its downfall. Agile has declined due to years of mistreatment and complexity and, yes, some of you might hate me - rigidity. It has gone from a powerful set of ideals and ideas to a hypercomplex array of methodologies and processes. A vague term that is applied to anything an organization undertakes, and a money machine for consulting companies.

Today is clear that adopting Agile does not guarantee, that a team or organization will be agile.

The method must adapt to the environment and the context, not the other way around, as operating with a poor understanding of the environment results in poor decisions and very likely in more process and rigidity[1]. The most successful organizations are, first and foremost, resilient[2]. That is, they can quickly create new organizational models and structures without massive invasive reorganizations: it is not so much a question of organizational charts and structures as of culture and collaboration. It is about fostering a mindset of adaptability and flexibility. In other words: Agile Methodologies are overrated.

The takeaway: True agility starts with a mindset. Secondly, it's all about Right-sized flexible "mean" teams that can easily improvise and adapt.

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Speed – or the boom-and-bust model of everything.

Before starting to debunk this myth, let’s agree that speed is vital in business, but let's address a big elephant in the room: It begins with what high performance means to us – and as with everything in life, this is as well, a matter of perspective. George Friedman, one of the most well-known geopolitical forecasters and strategists, explains how the success of any form of entrepreneurial achievement can't be measured in the short term. Only longer-term success counts for the advancement and prosperity of any human endeavor.

The same is valid for individuals and organizations - there is no benefit in having a rally of five successful years to then spectacularly crash and burn. There are more than enough examples of innovative super-fast-growing companies that have been the first to market or hyper disruptive taking a significant market share abruptly but have spectacularly fallen in a relatively short time, such as Blackberry, Atari, We Work, Nokia, Blockbuster, and many others. The dichotomy about these cases is that these companies, at their prime, were prominent examples of high-performing cultures.?

The rise of big-tech companies and modern life start-ups and unicorns have disrupted many businesses and left a mark on all of us, one of awe and fascination. This is probably the most common misconception about high performance. Consciously or unconsciously, we tie it up with short-term quick and spectacular wins.

There is evidence [3] that organizations need to slow down to be faster in the long run. This may seem counterintuitive, but it's often necessary to take a step back, re-evaluate priorities, and make changes in order to achieve sustainable success.

In today's fast-paced business environment, it's easy to get caught up in the need for speed and efficiency. As a result, organizations may be tempted to cut corners or rush to implement new initiatives without taking the time to consider the consequences fully. However, this approach can lead to mistakes, inefficiencies, and slower progress.

By taking the time to slow down and reflect on their goals and strategies, organizations can ensure that they are making informed decisions that are aligned with their long-term objectives. This includes taking the time to gather data, solicit input from stakeholders, and consider a range of potential scenarios and outcomes.

Slowing down can also help organizations to identify areas where they may need to make changes in order to improve their performance. This may include investing in employee training and development, implementing new processes or technologies, or rethinking their customer and employee engagement approach.

Ultimately, the goal of slowing down is to ensure that the organization can move forward in a more focused, efficient, and effective manner. By taking the time to reflect, learn, and make changes as needed, organizations can position themselves for long-term success and sustainable growth.

nothing beats doing the right thing and taking the right decisions repeatedly and sustainably.

For good and worse over the last decade, there has been a reset button of the corporate compass under the theme: "Past success does not guarantee future ones" – There is some truth about that statement, but to a large extent, it reflects the presumptuous "We know it better" attitude that defies some of the ground rules of human evolution and development, of learning and research and that borders with ideology.

Although speed is an essential ingredient of any successful organization, particularly the benefits it yields in accelerating the learning process – fail fast- learn fast; nothing beats doing the right thing and taking the right decisions repeatedly and sustainably. Unfortunately, for many business leaders, employees, and inpatient investors, there is denial that actual (sustainable) performance is simply built step-by-step with hard work and consistency over time. It might look unspectacular and boring, but ultimately there are no shortcuts, silver bullets, or magical agile methods to achieve it.

The takeaway: Speed is overrated - too much of it and you will crash; however, acceleration at the right time is fundamental but only equal to how fast and hard you can break. In other words = Flexibility to course correct.

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Obsessing about Outcomes: Or undermining the how and the process to achieve success.

The study of performance in management and finance is a well-researched topic. Professional and successful investors know very well that understanding the process of how things are achieved in an organization is as essential as the outcomes it generates. If investors do not analyze and deeply understand the organizational ecosystem, how can they possibly know whether the results are due to capability or merely due to chance? And how could they ensure that good results can be repeated or scaled?

There is clear evidence that the behaviors of individuals in a purely outcome-based organization can lead to financial disaster, promoting an "everything-goes" mentality where the "how" does not matter and where there is a disregard for the process to achieve results. This leads to corporate cultures becoming toxic. With a purely financial and outcome-based focus, big and successful corporations and entire economies have crashed or have the least been in severe trouble (Lehman, Enron, the great recession, We Work; Volkswagen, Boeing....)

When earning the buck becomes the higher purpose, the employees and clients become the means to the end.

The second problem with outcome-based organizations is the behavioral patterns it creates. Behavioral psychology research[4] on the topic of performance shows that when human beings multi-task and shift their attention from the task at hand to something that may or may not happen in the future (the fear or anxiety of winning/losing and the potential repercussions), they undermine their ability to perform at the moment. This is when people typically experience momentary lapses in performance due to poor decision-making or lack of focus.

Research[5] also points out, that high-performing companies have one thing in common: they are good at fostering a good ground for psychological safety - the state of mind that allows people to focus, feel confident, unpunished, and less anxious.

These findings also show that psychological safety allows for responsible risk-taking, speaking up, creativity, and accountability — just the types of behaviour that allow a "flow" mental state - Achieving this state can help people feel greater enjoyment, energy, and involvement. This contradicts the myth that a result-oriented organization needs to revolve around outcomes speed and activity. Peter Drucker studied big corporations across decades and concluded that one of the most significant sources of poor performance is organizational hyperactivity… Or the collective form of multi-tasking - working very hard and doing a lot (sometimes the wrong things) without prioritizing, coordinating, or strategizing [6].

The takeaway: More than obsessing about the outcome, is important to follow a clear purpose – A NorthStar that encompasses the rationale for outcomes and that acts as inspirational ambition for all. Furthermore, better than obsessing about outcomes is to have a laser focus on results – but understand, enable, and celebrate that reaching milestones on the journey (process) might be equally important as reaching the destination.

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It is all about top talent -?Or how to ignore the 95%

According to many studies, talent is overrated (Kodden 2020; Colvin 2010; Ericsson 2014, 2016; Syed 2011). Although to some degree, talent seems a prerequisite for sustained performance, the actual influence of talent is surprisingly minor. Research[7] on the topic has revealed that willpower beats talent any day of the week – Willpower or simply individuals that are perseverant, flexible, and resilient. According to Roy Baumeister, one of the world's most esteemed and influential psychologists, when you look at the important personality traits to achieve success, it all comes down mostly to willpower [8].

Therefore, willpower, which refers to an individual's drive, determination, and motivation to achieve their goals, is essential for organizational performance. In most cases, success in a corporate setting requires persistence, resilience, and the ability to overcome obstacles and setbacks. Employees with high levels of willpower are better equipped to handle stress, meet deadlines, and pursue long-term goals.

A narrow focus on top talent can create a toxic work environment where "top talents" get all the organizational attention causing these individuals in time to be overvalued and entitled (becoming terrible leaders), while the majority of employees goes underattended. This can lead to higher turnover, low morale, and decreased performance.[9]

The problem with willpower is that most organizations still hire more for experience and deep expertise knowledge rather than on traits that would indicate willpower. Additionally, organizations don't pay enough attention to the environment that allows willpower to flourish – which, correlates with the concept of organizational stability and psychological safety[10].

The takeaway: While top talent can bring valuable skills, knowledge, and expertise, having a holistic approach that fosters psychological safety across the organization is more important for sustainable performance. This includes attracting and retaining the right skills and mindset (willpower), building a positive and stable workplace, and creating an inclusive and supportive environment for all.

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Culture brings all of them together.

Cultural factors play a significant role in determining organizational performance.[11]. "Culture beats strategy" - a quote from the father of modern management Peter Drucker. It is often used to emphasize the importance of organizational culture in shaping the success of a business. According to Drucker, a solid corporate culture can profoundly impact a company's ability to achieve its goals and objectives. He observed that culture is more influential than strategy because it provides a framework for decision-making and shapes the behavior of employees, which ultimately affects the company's overall success.

It means a company's values, beliefs, and behaviors can significantly impact its success more than its specific plans and actions. A positive and supportive organizational culture can overcome the challenges of even the best-laid plans and strategies. On the other hand, a weak or toxic culture can undermine even the most well-conceived strategy.

Some of the key cultural factors that can contribute to high performance include:

• Shared values and vision: When employees share a common set of values and a clear idea of the organization's goals, they are more likely to be aligned and motivated to work together towards a common purpose.
• Trust and transparency: Trust and openness promote collaboration, open communication, and psychological safety, all essential for high performance.
• Empowerment and autonomy: Giving employees the freedom to make decisions and take ownership of their work can lead to higher engagement and motivation, contributing to improved performance.
• Collaboration and teamwork: Collaborative cultures that promote teamwork and cross-functional cooperation can lead to improved innovation, problem-solving, and decision-making, which can contribute to higher performance.
• Learning and growth orientation: Organizations prioritizing employee learning and development and encouraging employees to continuously grow and improve are more likely to attract and retain top talent and foster a culture of innovation and improvement.
• Inclusiveness and diversity: Cultures that value diversity and promote inclusiveness are more likely to leverage their employees' unique perspectives and ideas, which can lead to improved performance.
• Continuous feedback and improvement: Cultures that promote constant feedback and improvement encourage employees to continuously refine their skills, processes, and products, which can lead to higher performance over the long term.

High-performing companies typically have a well-established strategy aligning with their vision and goals. This strategy helps guide the company's decisions and actions and ensures everyone works towards the same objectives.

In addition to having a clear strategy, high-performing companies also prioritize Flexibility of implementation – adapting and course correcting (accelerating and braking) as necessary.

Balanced talent management practices are also crucial for high-performing companies. They understand the importance of attracting and retaining flexible and adaptable people and invest in their employees at all levels through training, development, and other opportunities to grow and advance in their careers.

High-performing companies are focused on how outcomes are achieved and deliver results. They measure their failures and success continuously and strive to improve and innovate.

Ultimately, high-performing organizations cultivate a corporate culture to make it all happen. A robust corporate culture emphasizes a psychologically stable environment for collaboration, transparency, and a shared sense of purpose that motivates and inspires employees to do their best.

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[1] Piwowar-Sulej, K. (2021), "Organizational culture and project management methodology: research in the financial industry", International Journal of Managing Projects in Business

[2] ?Fernando F. Suarez?Juan S. Montes (2020) Building Organizational Resilience in Harvard Business Review (November - December)

[3] Jocelyn R. Davis?and?Tom Atkinson (2010) Need Speed? Slow Down, in Harvard Business Review

[4] Ericsson KA (ed) (2019) The road to excellence: the acquisition of expert performance

[5] Henrik Bresman?and?Amy C. Edmondson (2022) To Excel, Diverse Teams Need Psychological Safety, in Harvard Business Review

[6] Rose Hollister?and?Michael D. Watkins (2018) Why Companies Won’t Let Bad Projects Die, in Harvard Business Review (September)

[7] Kodden, Bas. (2020). The Mediating Effect of Intelligence, Willpower, and Intrinsic Motivation on Talent and Performance.

[8] Baumeister RF and Tierney J (2012) Willpower. Why self-control is the secret to success.

[9] Conceptual Problems and Practical Negative Effects of Talent Management for Organizational Outcomes: A Critical Discussion VL?- 64

[10] Creating Sustainable Performance

[11] If Strategy Is So Important, Why Don’t We Make Time for It?